Buying Bitcoin on eToro Vs Coinbase – What is the difference?

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etoro vs coinbase

Cryptocurrencies are the hot affair right now in 2017! The market signs show that 2018 is going to be the year where major companies are going to make the transition to accepting and dealing with cryptocurrencies. The rise of cryptocurrencies was something that no one ever predicted. It started with the king of all cryptocurrencies, the Bitcoin.

Bitcoin now stands as the world’s largest cryptocurrency. The market shares and price charts are showing that it is going to stay in that trend for the foreseeable future. Everyone wants in on bitcoin, but it’s a fact that many do not know how to purchase bitcoin. In this article, let’s take a look at the two best standing methods that will help you buy bitcoin.

The mediums that we are talking about is eToro and Coinbase

eToro Vs. Coinbase: which ones best for you?

Many think that both are basically the same because both the mediums help the user to invest in the same thing – Bitcoin. But there exists a significant difference between the two as one is a trading option, and the other one is a cryptocurrency exchange. Hence, there are risks and advantages that are specifically tied to them. Let’s study them in detail;

eToro: The Popular Trading Platform Option

eToro is often mistaken as an exchange where you can buy cryptocurrency. But in reality, etoro is an online trading platform that lets you trade cryptos like bitcoin and many other alt coins. But with eToro you are not buying bitcoin directly, you are using leverage to buy a fraction of the whole amount.

So you can start trading with the least amount of price set by the trading platform and not have to worry about keeping wallets or hash sheets. Also, they are regulated, meaning that they liable for the security of your fund. In essence, cryptocurrency trading platforms are a safe and hassle-free experience which lets you ride the cryptocurrency train without the hassles of going into the details.

When we take eToro, the users are getting all the benefits of trading with the added benefits and features that are associated explicitly with eToro. Let’s take a deeper into the history of the platform.

The platform is based on Tel Aviv in Israel and came into existence in 2006. Currently, eToro claims to have more than 5 million users from 170 countries. With such a magnitude, eToro is rocking the cryptocurrency trading platforms.

Now let’s observe the features that make eToro stand out from the rest!

Leverage-Based Liquidity

As we discussed before, with trading, you do not owe the actual asset. This means that you don’t have to keep a cryptocurrency wallet. This saves a lot of time and effort as if you buying actual cryptos you need to keep track of the address and keys. Also, remember that wallets are prone to hacks and cyber vulnerabilities.

Easy Profile Registration

With eToro you don’t need to disclose your personal details or anything. You will, however, need to enter your bank account details for the cash withdrawal and deposit purposes.  Another criterion is that you must be 18 years or older to start trading. The only time where eToro will ask for your personal details will be when you want to deposit more than 2000 USD into the platforms.

Beginner Friendly Program 

New to bitcoin? Don’t fret as the platform will provide you will a virtual account with virtual money that you can invest on various cryptos to know how the system works. This way, you don’t have to worry about losing money and get to practice trading in real time. After you are sure that you can handle trading, you can easily switch back to a regular account by depositing money into it.

Customer Oriented Regulations

Regulations are something that the cryptocurrency world tread lightly on since the whole system is decentralized. But eToro is strictly regulated so that your money won’t go anywhere with a proper trail to get it back. The brokers in eToro are regulated under FCA and CySEC. Hence you don’t have to worry about security on your money.

Copy Trading

You can actually use the same tactics used by famous traders on the platform. This is a great way to lose all the calculations and prediction parts as if there high ranked traders make a move, it because they are sure of their decision. Again a very beginner friendly feature so that you don’t end up investing in the wrong trade.

Cons

When we consider the disadvantages of eToro, the only draws backs are that the platform doesn’t accept payments in the form of bitcoins or altcoins. Also, the list of cryptos to trade are also limited. But if you are only looking to trade bitcoin, think no more! This is the best choice for you!

Coinbase: The Popular Exchange Option

Coinbase is one of the well-known exchanges in the cryptocurrency world. With Coinbase you are getting access to a wide array of both popular and budding cryptos right on your mobile or desktop screen. The exchange is based in Sans Francisco, California. The company is not far in popularity as it operated in more than 31 countries. Also, Coinbase’s bitcoin storage facility is available to 190 countries.

With an exchange like Coinbase, you are actually buying cryptocurrency and storing it in a wallet. Therefore you will have to either opt for a software-based or hardware wallet to store your bitcoin address and keys.

With Coinbase you will have to disclose your credentials as a part of the verification process. The list also includes your tax payer’s number.  Don’t expect the buying process to be quick as trading as it will take some time to verify the purchase. This is not the exchange’s fault though; it’s is based on the mining or investor convince. If you want to directly own bitcoin, then Coinbase provides the easiest user-interface coupled with an intuitive design that will let you view the charts and study the trend without many complications.

Coinbase has its own mobile app that gives you all the functionalities of the website within your mobile. The various payment options including crypto-to-crypto conversion is a much-appreciated feature.

Again the final choice rests within your hands as you can decide to pick between a trading platform and exchange. Either way, Bitcoin gaining value by the second, so make your move fast and cash in on the centuries’ best investment!

Read also: Cryptocurrency: Where to buy if your based in Singapore?